Tether reduces commercial paper exposure to zero and replaces investments with treasury bills

The USDT issuer has come under fire for its exposure to commercial paper and, in particular, its alleged holdings in chinese commercial paper.

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Stablecoin issuer Tether Holdings Limited has unwound its commercial paper exposure, addressing a long-standing point of contention among critics who have criticized the quality of its reserves.

In addition to removing commercial paper from its reserves, Tether announced on October 13 that it had replaced these investments with U.S. Treasury bonds. "Reducing commercial paper to zero demonstrates Tether's commitment to backing its tokens with the most secure reserves in the market," the company said.

From about $30 billion to zero , Tether replaced its commercial paper holdings with safer US Treasuries. Source: Attach.

While Tether has long been under public scrutiny over its reserves, its critics have focused on its asset mix over the past year. Namely, in October 2021, Bloomberg speculated that Tether may have oversized exposure to Chinese commercial paper at a time when one of the country's largest real estate developers, China Evergrande Group, was about to sell off. collapse.

As always, @paoloardoino and the Tether team stay true to their words. Paolo said the exposure at CP will be zero by the end of October. Do. It's exciting to see the asset pool's CP exposure drop to zero. This gives Tether a solid foundation to leverage adoption even further over the next decade. https://t.co/sMj4kCONkO

— Gabor Gurbacs (@gaborgurbacs) October 13, 2022

A commercial paper is an unsecured short-term debt security issued by a company or...